The markets were in "risk off" mode today as the Brexit vote is due tomorrow. Investors reduced their position sizes today and sent the Dow 30 down 49 (-0.27%), the S&P 500 down 3 (-0.17%) and the Nasdaq 100 lower by 10 (-0.22%).
Tesla (TSLA ) plummeted 10.45% today after the electric car maker announced plans to buy SolarCity (SCTY ) for $2.8 billion. Analysts responded quickly with their disdain for the deal. Oppenheimer announced it downgraded Tesla's stock from outperform to perform, and said, "We do not view this acquisition as the best and highest use of TSLA's capital and human resources." Shares closed at new 3 month lows.
KB Home (KBH ) broke out to new 2016 highs today but the market weakness took it lower at the close (-1.09%). The home builder topped Wall Street expectations in its second quarter, suggesting a strong start to the spring home-selling season. KB Homes' earnings rose to $0.17 from $0.10 a year earlier. Traders celebrated the report with above average volume.
Adobe Systems (ADBE ) fell a whopping 5.73% today despite the company posting better-than-expected earnings for its latest quarter. Sellers took control as the company as the outlook for the current quarter dissapointed investors. Adobe reported adjusted earnings per share of $0.71 on revenue of $1.4 billion.
Lastly, Restoration Hardware (RH ) which has been under pressure for months, posted a solid 7.11% gain today after BB&T (BBT ) said Williams-Sonoma (WSM ) could buy the chain for $50 per share. Restoration Hardware has been under pressure since November of last year.
